Continental Express plans to start daily nonstop service between its Houston hub and Hermosillo, Mexico, capital of the northwestern state of Sonora. Service to Hermosillo is set to begin Aug. 1, pending government approval, and will be operated with 50-seat Embraer ERJ145 regional jets. With the addition of Hermosillo, an agricultural and manufacturing center, Continental will serve 21 destinations in Mexico.
TRAFFIC DATA FOR APRIL 2000 RPMs Change ASMs Change In From In From Load Airline Millions 4/99 Millions 4/99 Factor Vanguard 84.2 +22.0% 136.7 +41.0% 61.6% Midwest Express 171.2 +4.6% 259.1 +4.6% 66.1% Skyway 9.1 +31.1% 20.4 +46.5% 44.6%
Sabre Holdings said yesterday it has completed the second part of a three-phase, $10 million project to create a centralized operation control system for China Southern Airlines. The second phase involves integrating Sabre's SteadyState weight and balance system for safe, optimal aircraft loading, and Sabre FlightMonitor real-time flight monitoring system for the Sabre generated Systems Operation Control facility in Guangzhou, China. China Southern will become the first airline in China with an automated load planning system.
Fedex Pilots Association said FAA effective froze pilots out of the certification process and ignored "serious safety concerns" by approving a common type rating for "distinctly different aircraft," the MD-11 and the MD-10. FPA President Michael Weiland said he learned late last week that FAA was announcing that FedEx could use the same flight crews to fly both aircraft despite pilot objections and that the agency would announce its approval of the common type rating yesterday.
Delta has become the first commercial carrier to begin using new Australian-made fuel carts that will replace 47 fuel trucks at its Atlanta hub, the carrier said yesterday. Mac Armstrong, executive VP-operations, said the new carts will significantly improve fuel efficiency and enable the carrier to substantially reduce fueling-related flight delays and emissions from trucks. One cart is located at each of Delta's 82 gates on five Delta concourses.
Two hundred fifty outgoing and incoming flights were delayed and two others canceled May 5 when workers at Frankfurt Airport staged a walkout. The airport employees took the action in support of their fellow workers in public transport, who went on strike after negotiations with the government for a 5% pay raise ended in a stalemate. The airport workers, who come under the Lufthansa Workers Union, also are part of the Public Transport Union. They had been granted a 6% rise in salary by Lufthansa management.
Czech charter airline Travel Service took delivery of its first Boeing 737-800, becoming the first -800 operator in the Czech Republic. The aircraft was delivered on lease from GE Capital Aviation Services.
U.S. Major Carriers Systemwide Share of Service Fourth Quarter 1999 Total Revenue Departures Alaska 42,266 America West 53,372 American 216,862 Continental 116,029 Delta 240,657 Northwest 146,658 Southwest 217,906 TWA 72,081
Privatizations in Central America have led to higher -- not lower -- costs for airlines in the region, according to Grupo TACA CEO Federico Bloch. "We went from government monopolies to private monopolies," he said. Latin carriers pay 1.5 times the average of other regions for aviation infrastructure costs. Yesterday at the International Airline CEO Conference in Orlando, Bloch promised to pursue the issue aggressively.
U.S. Major Carriers Domestic Share of Service Fourth Quarter 1999 Total Revenue Departures Alaska 39,634 America West 52,299 American 186,507 Continental 100,927 Delta 229,403 Northwest 138,387 Southwest 217,906 TWA 70,439
JetBlue Airways, expected to announce new transcontinental routes in the next few weeks, has shown in its first three months of operation that Airbus A320 aircraft can be used effectively by a low-cost airline. The carrier intends to push its aircraft utilization above 12 hours a day this summer, which will drive unit costs to less than seven cents per available seat mile by yearend.
U.S. major airlines have seized the tremendous power of the Internet when targeting leisure travelers, but they have not yet drawn sizable online bookings from lucrative business travelers. This trend is changing, however, as 2000 is the beginning of a new era for web-enabled business travel booking, according to a recent Forrester Research analysis. Where leisure travel rose on the backs of eager consumers, "business travel will grow thanks to new corporate policies that will require travelers to use company-approved booking engines," said analyst Henry Harteveldt.
WestJet Airlines' first quarter earnings nearly doubled thanks to strict cost control and strong revenue growth. Net profit soared 96% to C$4.3 million (US$2.9 million) and revenues jumped 61% to C$58.4 million (US$39 million). "Our costs continue to remain well under control as a result of our ongoing diligence," said CEO Stephen Smith. Despite severe fuel price hikes, WestJet's fuel costs grew only 17.4%. The limited fuel effect came via a "successful" partial fuel hedging program. The airline's capacity increased 46.3%, but traffic kept pace, growing 50.7%.
Air Transport Association Cargo Traffic March 2000 Revenue Ton Miles (000) March March % 2000 1999 Change Domestic Freight 947,156 866,773 9.3 Mail 185,966 174,009 6.9 Total 1,133,122 1,040,782 8.9 International
FAA gave United permission to become the industry's first carrier to fly 207-minute extended range twin-engine operations (ETOPS) for its Boeing 777-200B aircraft across the North Pacific. United intends to use the new authority on a case-by-case basis with its 777s when weather doesn't allow the use of normal ETOPS alternate airports. The current 180-minute ETOPS has been in place for years, but in some instances when alternate airports are not available, United is forced to fly a more southerly path to remain within 180 minutes of Midway Island.
America West completed of the sale of a majority interest in its retail operations, National Leisure Group and The Vacation Store, to Softbank Capital Partners and General Catalyst. America West will retain a 12% ownership interest in the restructured venture.
Qantas last week named Amadeus its preferred information technology partner for distribution and customer service systems. The two parties signed a 10-year deal, under which Amadeus will operate and further develop Qantas reservations, inventory and departure control systems. Detailed contract negotiations will begin "shortly," and, if successful, are expected to conclude later this year.
Senate Commerce Committee Chairman John McCain (R-Ariz.) last week charged Aircraft Owners and Pilots Association President Phil Boyer with distorting McCain's position on having corporate jets pay user fees for air traffic control usage. Boyer said, "General aviation already pays user fees through federal fuel excise taxes." McCain also questioned Boyer's qualification to serve on the new FAA Advisory Council, AOPA said. McCain asked other nominees if they were in favor of a user fee system. Boyer and other nominees appeared before the committee.
U.S.-China hopefuls pressed DOT for award of the one designation available in the market beginning April 2001, while incumbents jockeyed for award of some of the 10 frequencies in final briefs. Filings in the docket -- many of which are batches of 20, 30 or 40 letters of support from employees, customers and business and community leaders backing their airline of choice -- have topped the 1,000 mark.
FAA named Steven Wallace director-accident investigation. FlightSafety International promoted Greg McGowan to VP-operations and Dave Casperson to manager-Citation Learning Center, Wichita, Kan.
Continental told DOT it opposes action on requests by LanPeru and LanChile to code share in the U.S.-Peru market until Continental gains similar rights from the Peruvian government. LanPeru asked DOT for "prompt approval" for authority to place its designator code on LanChile's daily nonstops between Lima and New York and Los Angeles (DAILY, April 25). DOT granted Continental authority Feb. 4 for Newark-Lima-Santiago and Houston-Lima-Santa Cruz service. The carrier, which wants to begin serving the route June 14, "continues to wait" for approval from Peru.
The proposed Indian civil aviation policy, being debated in parliament, would offer sweeping changes to encourage private and foreign equity in India's ailing airline industry. If passed, the draft would allow foreign equity of up to 74% equity in Indian civil aviation infrastructure with automatic approval and 100% with special permission from the minister of civil aviation. According to a Vikram Singh, a senior official at the ministry, the government promises to eliminate all bureaucracy that has plagued and retarded the growth of the industry in the past.
